Correlation Between Nanjing Putian and Eyebright Medical
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By analyzing existing cross correlation between Nanjing Putian Telecommunications and Eyebright Medical Technology, you can compare the effects of market volatilities on Nanjing Putian and Eyebright Medical and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Nanjing Putian with a short position of Eyebright Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Putian and Eyebright Medical.
Diversification Opportunities for Nanjing Putian and Eyebright Medical
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nanjing and Eyebright is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Putian Telecommunicati and Eyebright Medical Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eyebright Medical and Nanjing Putian is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Nanjing Putian Telecommunications are associated (or correlated) with Eyebright Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eyebright Medical has no effect on the direction of Nanjing Putian i.e., Nanjing Putian and Eyebright Medical go up and down completely randomly.
Pair Corralation between Nanjing Putian and Eyebright Medical
Assuming the 90 days trading horizon Nanjing Putian Telecommunications is expected to generate 0.9 times more return on investment than Eyebright Medical. However, Nanjing Putian Telecommunications is 1.11 times less risky than Eyebright Medical. It trades about 0.38 of its potential returns per unit of risk. Eyebright Medical Technology is currently generating about 0.09 per unit of risk. If you would invest 194.00 in Nanjing Putian Telecommunications on September 2, 2024 and sell it today you would earn a total of 266.00 from holding Nanjing Putian Telecommunications or generate 137.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nanjing Putian Telecommunicati vs. Eyebright Medical Technology
Performance |
| Timeline |
| Nanjing Putian Telec |
| Eyebright Medical |
Nanjing Putian and Eyebright Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Putian and Eyebright Medical
The main advantage of trading using opposite Nanjing Putian and Eyebright Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Putian position performs unexpectedly, Eyebright Medical can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Eyebright Medical will offset losses from the drop in Eyebright Medical's long position.| Nanjing Putian vs. Puyang Huicheng Electronic | Nanjing Putian vs. Jiangyin Jianghua Microelectronics | Nanjing Putian vs. Qumei Furniture Group | Nanjing Putian vs. Fiberhome Telecommunication Technologies |
| Eyebright Medical vs. Nanjing Putian Telecommunications | Eyebright Medical vs. Shenzhen Hifuture Electric | Eyebright Medical vs. Tianjin Realty Development | Eyebright Medical vs. Shenyang Huitian Thermal |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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